5E Advanced Materials Continues to Execute Corporate Strategy

HIGHLIGHTS

• Small-Scale Boron Facility (“SSBF”) construction progressing towards mechanical completion targeted in CQ4 2022
• Focus shifting to production of boron advanced materials from initial boric acid production with activities including:
  • Identification of boron advanced materials families where 5E can leverage its manufacturing cost advantage over current industry participants
  • Discussions for end-user partnerships
  • Integration of lithium production
  • Enhancement of operational capabilities in preparation for the large-scale complex
  • Alignment with and leveraging of U.S. government support catalysts
• Lithium co-product partner discussions advancing
• Major boron producer signalling further price increases for CQ1 2023
• U.S. public market initiatives increasing with goal to achieve mainstream recognition for boron

HOUSTON, Nov. 01, 2022 (GLOBE NEWSWIRE) -- 5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) (“5E” or the “Company”), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas (Fort Cady) Complex, is pleased to provide an update on the execution of its corporate strategy.

Corporate Strategy

5E’s corporate strategy is to become a fully integrated global leader in the production of high-value, high-margin boron and lithium advanced materials that enable three global mega-trends in decarbonization, food security, and securing the U.S. domestic supply of critical materials. 5E is currently the only substantially permitted company with an integrated business model underpinned by a large domestic source of boron and lithium. This will deliver a number of unique advantages with respect to control of supply, product development and a superior cost position relative to other foreign and domestic producers. In recognition for the importance of the Company’s boron and lithium assets, 5E has renamed the Fort Cady area to “5E Boron Americas (Fort Cady) Complex.”

5E is also expected to benefit from a long-term competitive advantage driven by geology in the context of limited new sources of boron available globally against a tightening market, evidenced by geopolitical supply risk and rising prices. This proposition is supported by anecdotal evidence from market participants suggesting a major global boron producer has signalled a further price increase in CQ1 2023.

Key objectives from the corporate strategy include:

1. Mechanical completion of the SSBF in CQ4 2022 to enable optimization of the large-scale complex, product qualification, and feedstock for the initial production of boron advanced materials;
2. Identification of best value market opportunities for boron and lithium advanced materials products;
3. Completion of value engineering and operational optimization for initial meaningful production of boron and lithium;
4. Initial production of boron advanced materials to establish market position and demonstrate competitive advantages in high-value, high-margin products; and
5. Execution of non-dilutive financing that incorporates consideration of U.S. government grants and loans, project financing, corporate and green bonds, and customer prepayments linked to the supply of lithium and/or boron for decarbonisation and fertiliser applications and more broadly advanced materials.
   

Small-Scale Boron Facility (“SSBF”)

Mechanical completion of the SSBF remains on track for CQ4 2022. The site currently has a construction workforce of 70 people, inclusive of 5E employees. This workforce is expected to increase to approximately 200 people in November and December 2022. See below images of SSBF construction as of October 2022.

Lithium Co-Product Commercial Discussions

On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law by U.S. President Joseph Biden. Among other initiatives, this Act provides significant tax incentives for energy and climate change initiatives where materials are sourced from the U.S. or countries with which the U.S. has a Free Trade Agreement. This has resulted in substantial interest in U.S. sources of battery metals, including lithium.

5E’s Boron Americas (Fort Cady) Complex contains one of the only new, large sources of substantially permitted lithium in the U.S. amidst challenging supply and demand fundamentals, and as such discussions have been developing with potential customer partners.

Boron Advanced Materials Strategy

Significant progress has been made with respect to the Company’s boron advanced materials strategy. The Company is focused on high-value, high-margin, and future facing applications that require boric acid as the enabling material.

Three boron advanced materials families have been identified as the Company’s initial focus with a collective addressable market value of approximately $1 billion. The Company is now focused on pursuing the best market opportunity for the internal production of boron advanced materials using the boric acid produced from the 5E Boron Americas (Fort Cady) Complex.

U.S. Investor Relations Initiatives

The Company is working on multiple initiatives to broaden market knowledge of boron and 5E’s unique boron and lithium opportunity in U.S. markets. Multiple resources are currently working on investor engagements and the Company has been pleased with early feedback on its marketing initiatives.

The Company has a program of marketing initiatives through November 2022, including Baird’s 2022 Global Industrial Conference and Benchmark Week, and is excited by the prospect of introducing a unique boron and lithium opportunity to U.S. investors.

Authorized for release by: David Salisbury, Chairman of the Board of Directors   

For further information contact:

About 5E Advanced Materials, Inc.

5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) is focused on becoming a vertically integrated global leader and supplier of boron specialty and advanced materials, complemented by lithium co-product production. The Company’s mission is to become a supplier of these critical materials to industries addressing global decarbonization, food and domestic security. Boron and lithium products will target applications in the fields of electric transportation, clean energy infrastructure, such as solar and wind power, fertilizers, and domestic security. The business strategy and objectives are to develop capabilities ranging from upstream extraction and product sales of boric acid, lithium carbonate and potentially other co-products, to downstream boron advanced material processing and development. The business is based on our large domestic boron and lithium resource, which is located in Southern California and designated as Critical Infrastructure by the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency.

Forward Looking Statements and Disclosures

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements other than statements of historical fact included in this press release regarding our business strategy, plans, goal, and objectives are forward-looking statements. When used in this press release, the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “budget,” “target,” “aim,” “strategy,” “estimate,” “plan,” “guidance,” “outlook,” “intent,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on 5E’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the extraction of the critical materials we intend to produce and advanced materials production and development. These risks include, but are not limited to: our limited operating history in the borates and lithium industries and no revenue from our proposed extraction operations at our properties; our need for substantial additional financing to execute our business plan and our ability to access capital and the financial markets; our status as an exploration stage company dependant on a single project with no known Regulation S-K 1300 mineral reserves and the inherent uncertainty in estimates of mineral resources; our lack of history in mineral production and the significant risks associated with achieving our business strategies, including our downstream processing ambitions; our incurrence of significant net operating losses to date and plans to incur continued losses for the foreseeable future; risks and uncertainties relating to the development of the 5E Boron Americas Complex, including our ability to timely and successfully complete our Small Scale Boron Facility; and other risks. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. No representation or warranty (express or implied) is made as to, and no reliance should be place on, any information, including projections, estimates, targets, and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions, or misstatements contained herein. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as to the date of this press release.

For additional information regarding these various factors, you should carefully review the risk factors and other disclosures in the Company’s Form 10-K filed on September 28, 2022. Additional risks are also disclosed by 5E in its filings with the U.S. Securities and Exchange Commission, throughout the year, including its Form 10-K, Form 10-Qs and Form 8-Ks, as well as in its filings under the Australian Securities Exchange. Any forward-looking statements are given only as of the date hereof. Except as required by law, 5E expressly disclaims any obligation to update or revise any such forward-looking statements. Additionally, 5E undertakes no obligation to comment on third party analyses or statements regarding 5E’s actual or expected financial or operating results or its securities.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d7f8d49b-4027-4f94-859a-195df34f01b9.